In today’s uncertain and sometimes volatile financial world, the importance of putting tangible steps in place not only to protect, but to maximize your investments and wealth has never been more crucial. Without the gift of a crystal ball, we are unable to confidently predict the precise landscape of the financial outlook a year in advance, let alone decades ahead. This is where the importance of forward and contingency financial planning comes in. Let’s explore some of the key areas in this field:

Planning for Your Financial Future

Risk management is a term given to the strategies to help to protect your capital from unexpected events which can have a critical effect on your finances, such as unemployment, disability or critical illness.

In case of unemployment, you should have an emergency fund (usually about 3 months of income). The benefits of disability insurance policies are that in case of disability and you can not work, the insurance will provide you with a portion of your salary.

In case of critical illness, you can use the benefit to maintain financial stability and recover without financial worries.

Considering Segregated Funds?

Dabbling in equities markets can sometimes feel daunting and many people worry about the risks of investing their capital in the market over which they have no direct control. If this is something that concerns you too, segregated funds could provide you with a good compromise. They have similarities to mutual funds in that that they allow you to benefit from the financial growth of your portfolio of securities, but offer you more protection by the means of a maturity guarantee and a death benefit guarantee, further securing your investment.

We end this article with a nod to the crucial area of estate planning. Essentially, this involves ensuring that you create and maintain an up to date and legally binding Will, as well as choosing your executor, beneficiaries, trustees and also naming a legal guardian for your children, if you have any. This will help to ensure that your financial wishes are carried out correctly and effectively, minimizing upset and disruption at a difficult time.

By taking the time to think carefully about your current financial position and the priorities that you have for your and your family’s future, you can take advantage of some of the strategies, products and services out there to provide extra security for your financial future and added peace of mind for yourself and your family.

One of the financial planning issues that business owners face is how to access their corporate earnings in a tax efficient way.

There are 5 standard methods:

Salary

Dividend

Shareholder Loans

Transfer Personal Assets

Income Splitting

There are also unique ways utilizing life insurance and critical illness insurance to access your retained earnings. Please contact us to learn how we can get more money in your pocket than in the government’s.